Part of the problem is that loans that were not sub-prime are going into default. Due to the economy, with layoffs and other factors, people that had great credit scores and received loans are now unable to pay. It is this increase that is really hurting the institutions.

The bailouts are not all for loan losses. Institutions also invest some of their capital, some of this was in the stock market and other places, and these have also lost value. They are required to have a certain amount of capital, and with changes in the value of investments, many of them are coming up short.

Uh, a lot of these people defaulted.

One week before my friend was also searching for Bad credit loans he have worst credit i think below 500.
He told me that when i was searching on Internet for Bad credit loan he found a site which contain link for Geniune for Bad credit Loan. He checked all 8 links in that each link offer different interest rate and repayment time.
My Friend got loan of 25000$ for 15 years on 3% interest rate which should be payed annually.
Well you go to

http://easyloan.net.tf > Bad credit loan

Check all 8 links in that in search of lowest interest rates.

Take Care
Bye!